Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Municipal Finance topic
No spam. Unsubscribe anytime.
Resident raises concerns about town investment oversight during Kiawah meeting
Summary
During public comment at the council meeting, a resident expressed concern that the town's $40 million investment is held with an entity he described as not state-backed or SEC-regulated and criticized a lapse in ways-and-means committee meetings; council members responded with a description of the municipal investment vehicle.
During the public-comment period following approval of the mediation settlement, resident Larry Wollohan told the council he was concerned about the town’s $40,000,000 investment and the oversight of that vehicle. He said the funds are held in an entity that—he alleged—is not backed by the state and not subject to regulation, and he questioned the recent cadence of the town’s ways-and-means committee meetings.
Wollohan said he has raised the issue previously and urged more scrutiny. In response, Council member Luke told the public that municipal investments are not FDIC-guaranteed beyond standard limits and described the town’s vehicle as a short-duration, cash-like fund invested primarily in U.S. treasuries, U.S. agency discount notes and limited commercial paper, with maturities generally limited to about 60 days.
Luke said that, as a cash vehicle for municipal funds, the approach limits duration and interest-rate risk and is commonly used for short-term municipal liquidity. The council did not make a formal policy change during the meeting; the exchange was limited to a public-comment concern and a council clarification about the investment vehicle’s composition and risk profile.
The meeting then moved on to other public comments and adjourned.
